The South African Insurance Industry Survey 2025

On the whole, life insurers reported positive results for 2024 compared to prior years. Having trawled through the life insurance results shared with our team we noted the following trends in this sector over the 2024 financial reporting season.

In the world of risk, chaos is not a failure, but rather a feature. It challenges assumptions, reveals hidden vulnerabilities and exposes the relationships we might otherwise overlook. 

Nature and biodiversity risks, while generally not as well understood as climate-related risks, are important and relevant risks for insurers. Due to their perceived complexity, insurers may face nature-related risks that are not yet adequately captured in their current risk assessment frameworks or models. 

The insurance industry, like most businesses in South Africa, is exposed to a variety of internal and external forces, ranging from social media scrutiny and cyber-attacks to local and global political developments, amongst others.

Ninety percent of the non-life insurance industry reported improved results for 2024. This is a feel-good story of a well deserving industry, demonstrating immense levels of resilience during turbulent times.

Artificial intelligence (AI) has already delivered incremental improvements to insurers using predictive analytics and basic automation. Now, a new chapter is emerging with agentic AI - a class of intelligent systems that can autonomously reason, plan and act.

While IFRS 17 has set a structure for improved alignment in reporting, it has not yet resulted in a perfect situation where every company’s results are directly comparable.

South Africans are increasingly paying more for less and this holds true for insurance cover. The number of South Africans who are fully protected by insurance cover is reducing due to economic and underwriting pressures.

The reinsurance industry continued to maintain the robust financial results experienced in the previous year, building on the momentum and gains established in 2023.

The Prudential Authority's guidance notice on climate risk management issued in 2024 provides directives for South African insurers on how to develop and implement effective transition plans.

The 2024 financial year presented a significant milestone for insurers, with all insurers reporting their financial results under IFRS 17 Insurance Contracts (IFRS 17).